Business · Companies · 2 hrs ago
Premium drinks grow as budget liquor sales weaken in India
Premium spirits and beer drove growth for Indian liquor makers in the September quarter, while cheaper drinks lost ground.
The results point to a widening divide between wealthier consumers and those under inflation pressure.
United Spirits said sales of its popular spirits fell 22.7% in value and 29.7% in volume, while its prestige-and-above portfolio grew 6.3%.
Radico Khaitan’s prestige-and-above volumes rose 36%, far faster than its total Indian-made foreign liquor volumes, which grew 7%.
Radico’s regular and lower-priced brands declined, and United Spirits also reported lower overall revenue and profit.
The figures matter because rising living costs are squeezing price-sensitive drinkers, while premium brands are lifting growth for some companies.
India’s liquor market is splitting, with premium spirits and beer growing as inflation-hit consumers cut back on cheaper drinks.
September-quarter results showed premium portfolio growth at Radico Khaitan and United Breweries, while United Spirits reported weaker sales in its lower-priced segment.
United Spirits’ popular segment net sales value fell 22.7% year on year to ₹181 crore, while its ‘prestige & above’ portfolio grew 6.3%.
Radico Khaitan’s ‘prestige & above’ volumes rose 36% year on year, while volumes in its ‘regular and others’ portfolio declined 9.7%.
United Spirits said inflation was weighing on lower-income consumers, while a company executive said younger consumers were shifting towards vodka and other white spirits.
- Who
- Indian liquor makers including Radico Khaitan, United Breweries and United Spirits, and their consumers.
- What
- Premium drinks are driving growth, while sales of lower-priced liquor are weakening.
- When
- In the September quarter; the articles were published on 4 November 2026.
- Where
- India.
- Why
- Inflation and rising living costs are pressuring price-sensitive consumers, while premium portfolios and changing preferences among younger consumers are supporting growth.
This story does not have two clearly opposing sides.
Liquor makers reported results showing growth in premium portfolios and pressure on lower-priced brands.
United Spirits chief executive Praveen Someshwar said inflation was weighing on consumers targeted by the lower half of its portfolio.
Mint published its report on the split in India’s liquor market.
- United Spirits popular segment
- Net sales value fell 22.7% year on year to ₹181 crore
- United Spirits popular segment
- Sales volume fell 29.7% to 1.58 million cases
- United Spirits prestige & above portfolio
- Grew 6.3%
- Radico Khaitan prestige & above volumes
- Rose 36% year on year to 5.28 million cases
- Radico Khaitan regular and others volumes
- Declined 9.7%
- Radico Khaitan gross margin
- Expanded 440 basis points to 48%
What people are saying
The India 1 consumer, which is a target audience for the lower half of the IMFL portfolio, is showing signs of fatigue due to the impact of inflation on its wallet
We are seeing a lot of shift, especially with the Gen Z and the younger generation and the women coming in—their liking is towards the white spirits because it is more easily mixable
But I would be cautious about interpreting this as a fundamental shift in consumer behaviour across India.
It does not necessarily mean that the mass-market consumer is trading up.